SA bank customers still prefer human interaction for problem solving – study

Research showed that clients found automated, often meaningless, responses to be one of their biggest frustrations with AI when it comes to banking.

While AI is projected to bring in billions for the global banking industry in the next few years, 2022 consumer research conducted by BPO provider, Merchants suggests that going fully digital may not be the answer for South African banks who want to keep customers happy.

AI had its limits

“The growth and adoption of AI technology in the South African banking landscape has ushered in a new era of convenience. While this technology, especially as used in chatbots, is useful in providing a positive customer experience, it does have its limits,” explains Merchants Group CRO, Mathew Conn.

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“Our research, conducted over a two-month period, clearly demonstrated the need for human-led support in creating a positive, tailored experience for the SA consumer.

“The research showed that clients found automated, often meaningless, responses to be one of their biggest frustrations with AI when it comes to banking. Furthermore, connectivity issues in South African also place a damper on the adoption of AI.”

Customers want to speak to another actual person

The research was conducted amongst 2 000 respondents from across the country. While 93% of respondents highlighting digital channels as their preferred method of banking, when seeking problem solving or customer service, they wanted to speak to another person.

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Among other things, the research showed that nearly one in three respondents (29%) only contact their bank only a few times a year. This is usually when they are unable to solve a problem online.

“In this case, clients expect quick turnaround times and problem solving with 46% of respondents indicating that they prefer in-person contact, while 25% prefer to use call centres,” notes Conn.

Conn believes that the companies that find the balance between the use of AI and human interaction will reap massive benefits in terms of market share and customer loyalty. This means using technology to augment a customer’s experience of the brand rather than replacing human interaction altogether.